Problema 2015 ford mustang convertible in lsquogotta have, Ask an Expert

Finance

Problem:

A 2015 Ford Mustang convertible in ‘Gotta Have it Green Metallic' is retailing for $36,000. If you put $5000 down on the vehicle, and obtain approval for a 2.19% car loan compounded monthly for 5 years,

Question:

Question 1: What are the monthly payments and the total interest that is paid on the loan in 5 years?

Question 2: To pay a half as much in interest over the life of the loan at the same rate, how long should the vehicle be financed for (round final answer to the nearest month) and what is the new payment per month? Parts (a) and (b) should be set up in Excel, using intrinsic functions for the calculation of the payments and goal seek to determine the new time period.
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Category:- Basic Finance
Reference No.:- M91145900

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